Banning City Council
March 12, 2024

The following information comprises the minutes for a special meeting of the City Council, a joint meeting of the Banning City Council and Banning Utility Authority and a joint meeting of the Banning City Council and the Banning City Council sitting in its capacity as the Successor Agency Board.

MINUTES 3/12/2024

CITY COUNCIL SPECIAL MEETING
COUNCIL MEMBERS PRESENT: Council Member Sheri Flynn
Council Member David Happe
Mayor Pro Tem Rick Minjares
Mayor Alberto Sanchez
Council Member Colleen Wallace
COUNCIL MEMBERS ABSENT: None
OTHERS PRESENT: Doug Schulze, City Manager
Serita Young, City Attorney
Marie Calderon, City Clerk
Caroline Patton, Administrative City Clerk
John Garside, Multimedia Specialist
Lincoln Bogard, Administrative Services Director
Barbara Mason, Purchasing Manager

1. CALL TO ORDER
Mayor Sanchez called the special meeting to order at 3:30 p.m.

1.1 Roll Call
COUNCIL MEMBER PRESENT: ABSENT
Flynn, Sheri 
Happe, David 
Minjares, Rick 
Sanchez, Alberto 
Wallace, Colleen 

2. PUBLIC COMMENT – Agenda Items
• Diego Rose
• John Hagen
• Frank Connolly
• Frank Burgess
• David Ellis
• Richard Royce
Special Meeting Minutes 3/12/2024 Page 2 of 2

3. WORKSHOP

3.1. Interviews of Finalists from the Request for Proposals for Citywide Forensic Investigation Services
Lincoln Bogard, Administrative Services Director, presented the staff report.

Presentations followed:
• Forvis, LLP (represented by Rand Gambrell)
• Marsh Minick, PC (represented by Melissa Minick)
• BDO USA, LLP (represented by Sly Atayee and Corey Eide) Motion to continue this item to the March 26, 2024 Regular City Council Meeting.

Motion by Council Member Flynn
Seconded by Mayor Sanchez

COUNCIL MEMBER YES NO ABSTAIN RECUSE ABSENT
Flynn, Sheri 
Happe, David 
Minjares, Rick 
Sanchez, Alberto 
Wallace, Colleen 
Motion approved by a vote of 5-0.

4. ADJOURNMENT
The Special City Council meeting adjourned at 5:49 p.m.

Minutes Prepared by:

Caroline Patton, Administrative City Clerk
These minutes have been prepared as Action Minutes in accordance with City Council Resolution 1995-21 and Government Code Sections 36814, 40801, and 54953(c)(2).

This entire meeting and all associated documents may be viewed here:
http://banning.ca.us/755/Agendas-and-Minutes---2024-to-Present ATTACHMENTS:

Exhibit A – Presentation by Forvis, LLP
Exhibit B – Presentation by Marsh Minick, PC
Exhibit C – Presentation by BDO USA, LLP
FORVIS
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office Advisory / 1 FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office.

Prepared for
City of Banning
March 2024
Exhibit A
FORVIS
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office Advisory / 2
[email protected]
Rand Gambrell, CVA, CFE, ABV, CFF
Managing Director
Presenter Bio
 Rand has more than 20 years of experience in business valuation services, forensic accounting, economic damage analysis, fraud auditing, and bankruptcy.  His experience also includes performing audits and consulting services for large national and international companies while with an international accounting firm.  Performs valuations for transactions, restructurings, marital dissolutions, and income tax-related purposes and provides economic analysis of damage.  Helos identify source and use of funds through forensic accounting and provides financial consulting related to bankruptcy.  He also performs consulting services, serving both as an expert witness and a neutral “referee,” in a variety of post-acquisition and other dispute matters.

FORVIS
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office Advisory / 3
City of Banning – What We Heard
• The City of Banning (the “City”) is requesting a review of existing cash receipt and disbursement controls to identify fraud and misconduct risk areas and to provide recommendations to assist the City in improving these controls.
• In addition, the City is requesting forensic accounting and investigation services to help identify abnormal financial activity relating to receipts and disbursements (including tax receipts and distributions). • If necessary, the City will need expert witness services to assist with asset recovery and restitution.

FORVIS
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office Advisory / 4
Project Plan & Schedule: Control Assessment, Testing, & Deliverables The objective of the control assessment is to evaluate the current-state processes, structure, systems and resources to identify high risk areas and to recommend strategies to enhance efficiency, effectiveness, and timeliness. FORVIS does not subscribe to the playbook of “one-size-fits-all” when it involves assessing and testing complex operations. Instead, we tailor a customized program of procedures specific to the City and aligned with your unique requirements and objectives.

We employ a phased approach that commences with a discovery phase which provides a targeted foundation for subsequent phases. This approach informs the plan, scope and procedures for Phase 2.

We will collaborate with management to develop and refine clear objectives and the goals of the overall engagement. Each phase is comprised of the following objectives and areas of focus:

Phase 3 (Months 2 & 3):

Implementation – Transaction Testing
Phase 2 (Months 1 & 2):

Analysis & Recommendations – Assessment of people,
processes, structure, and systems
Phase 1 (Month 1):

Discovery – To be well-informed, targeted, collaborative, aligned, and focused on developing key objectives and
strategies
 Test of Transactions – Based on the detailed testing
and internal control remediation roadmap developed in
Phase 2, execute detailed testing using a combination of data analytics and focused transaction analysis.  Revisit Testing Based on Preliminary Results – based on preliminary testing and with the input of City personnel, revisit testing strategies to help ensure high risk areas have been adequately addressed
Deliverables
• Project Status Updates – as detailed control and
transaction testing procedures are performed, hold
periodic update meetings with City personnel to review
procedures performed and initial testing results.
 Process Mapping – Create high-level visual representations of process steps, inputs, outputs, decisions points to identify inefficiencies or redundant processes to formulate
recommendations to streamline processes.  Data Collection & Analysis – Assessment of performance metrics, cycle times, error rates, and other key indicators to identify trends and patterns. Could include an integrity assessment of critical data and reporting relied upon for decision making and monitoring.  Observation & Work Sampling – Observing the processes in action to detect resource waste, productivity measures and identification of time-consuming tasks. This involves interviews and potential surveys.  Technology Evaluation – Assessing the effectiveness, functionality, and integration of key systems within critical processes.  Root Cause Analysis – Essential to formulating meaningful recommendations to address areas of challenge.

Deliverables • Prioritized recommendations to provide a detailed testing and internal control remediation roadmap (for Phase 3)
 Understanding Current State – Gain a baseline
understanding of current operations, processes, systems and resources
 Identify Key Challenges – Issues can range from
inefficiencies, redundancies, control gaps, resource
constraints, reporting structure or system/data challenges.  Defining Objectives & Goals – Procedures enable the identification of specific areas to prioritize for assessment and to align with business strategy resulting in a successful outcome.  Data Collection & Analysis – Documentation of existing processes, systems and performance metrics provides us
with the necessary insight to customize a detailed plan for subsequent phases.  Stakeholder Engagement – Relevant stakeholders provide valuable insight & perspective as we refine objectives.  Planning & Resource Allocation – Understanding of resource allocation, job responsibilities, performance
monitoring & skill requirements.

Deliverables • Phase 2 project plan and timeline
FORVIS
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office Advisory / 5
Phase 5:

Additional Procedures (TBD)
Phase 4:

Reporting (Month 4)  As requested, FORVIS personnel will provide additional forensic accounting, dispute consulting, and expert witness services to assist the City in its asset recovery and restitution efforts.  Preliminary Oral Report - provide an oral report to City personnel of procedures performed, findings, and resulting recommendations  Recommendations - provide recommendations regarding additional procedures (if any) recommended by FORVIS  Final Written Report - provide a final report to the City of procedures performed, findings, and resulting recommendations Project Plan and Schedule Continued
FORVIS
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office Advisory / 6
The FORVIS Difference
Here’s what sets us apart:

Industry Expertise - Best practices learned from similar institutions and confidence in guidance from advisors.

National Resources and Depth of Solutions – Solutions to your evolving challenges and concerns.

Well-Rounded Team of Professionals – We will assemble an integrated team of forensic and internal audit/control specialists to address the unique risks and requirements of the City. We will combine our forensic, data analytics, internal control, and public sector experience into a customized approach to your assessment.

Public Sector Experience – FORVIS’ internal control, forensics, and data analytics team has extensive experience working with state and local governments, assisting our clients in identifying internal control weaknesses and helping detect transactions indicative of potential fraud and abuse. FORVIS takes a proactive approach, assisting clients in strengthening internal deficiencies to help reduce fraud risks.

A Team with Litigation Support Experience – FORVIS’ integrated team will include professionals with significant litigation support and testimony experience, providing a seamless transition into dispute consulting should fraudulent transactions and activity be identified.

Client Satisfaction
It may sound simplistic, but we believe the best way to know how we’re doing is by simply asking our clients. We routinely seek input from our clients during our services through establishing a timeline of meetings to keep stakeholders apprised of our progress and findings, and to solicit feedback on our services and the manner in which we provide them. However, at FORVIS, client satisfaction expands well beyond individual engagement teams. Leaders of the firm routinely visit clients to monitor their satisfaction with our services, including managing partners, national industry partners and C-Suite executives. We also monitor client satisfaction by periodically issuing client satisfaction surveys, the results of which have generally been positive.

FORVIS
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office Advisory / 7 Assurance / Tax / Advisory
Q & A Period
FORVIS
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office Advisory / 8 FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office.

Appendix
FORVIS
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office Advisory / 9
Powered by FORVIS Advisory’s Accelerator Platform
 Application & Infrastructure Services
 Cloud Services and Automation
 Digital Transformation
 Enterprise Technology Strategy
 IT Risk & Controls
 System Implementation & Modernization
 Technology Change Management  Cybersecurity
 PCI Compliance
 Accounting Advisory & Financial Reporting
 Business Transformation
 CFO Data & Analytics
 CFO Digital Technology
 Global Finance
 Performance & Process Improvement
Talent
Development
Technology
Partnerships
Project
Management
Strategic
Alliances
Delivery
Methodologies
Industry
Focus
FORVIS combines deep industry experience, comprehensive advisory services, and a strong commitment to client service.

Advisory Overview
 ESG & Climate Risk
 Quantitative Solutions
 Risk Analytics & Reporting
 Risk Architecture & Technology
 Data Management  Risk Management & Controls
 Anti-Financial Crime
 Regulatory Change & Process Improvement  Regulatory Compliance Regulatory Reporting, Data & Analytics  Regulatory Technology
Technology
CFO & Business
Enterprise Risk &
Quantitative
Regulatory
Internal Audit  Internal Audit Core Services
 Sarbanes Oxley (SOX) & Internal Controls
over Financial Reporting
 Internal Audit for Regulated Industries
 Contract Assurance  Governance, Risk, & Compliance
 Data Analytics & Automation
FORVIS
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office Advisory / 10
Unmatched Client Experience: Proven Results
Our firm is committed to delivering
Unmatched Client Experiences
through exceptional quality and client
service. In 2023, FORVIS won
ClearlyRated’s Best of Accounting
Award for Service Excellence.

ClearlyRated utilizes a Net Promoter®
Score (NPS®) to determine the results.

NPS is a simple metric based on a
survey question that asks your clients
how likely they are to recommend your
firm to a friend or colleague on a
numeric scale of 0 - 10. Below, we
have shared statistics regarding
FORVIS’ NPS and comparable scores
from other leading brands and our
industry.

FORVIS
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office Advisory / 11
Proposed Global Network – effective June 1, 2024
12 *Top 10
Global network
**Top 10
U.S. Public Accounting Firm
$5bn
Combined revenue (2023)
400
Combined countries, territories, &
locations
300+
Combined offices
1,800+
Combined partners
40,000+
Combined employees
*Source: IAB World Network rankings, based on most recent rankings 2023 revenues: FORVIS $1.7bn (€1.6bn), Mazars (expected) $3bn (€2.8bn). **Source: Inside Public Accounting, based on most recent rankings FORVIS and Mazars have agreed to create a global network of two members. The new network will operate under a single brand Forvis Mazars, effective June 1, 2024 Mazars USA will join FORVIS in the U.S., effective June 1, 2024 FORVIS
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office Advisory / 13 Assurance / Tax / Advisory
Thank You!
Direct Contacts
Rand Gambrell, CPA, ABV, CFE, CFF
Managing Director/Engagement Executive
[email protected]
forvis.com
City of Banning
Forensic Audit & Investigation Services
March 12, 2024 Discussion
Phone: 971-266-1846
17548 NW Springville Rd. #17, Portland, OR 97229
Email: [email protected] & [email protected] Website: www.MarshMinick.com
1 Exhibit B
Presentation Outline

1. Background and About Marsh Minick

2. Past Forensic and Investigative Work

3. Work Summary Proposed for City of Banning

4. Timeline Proposed

5. Common Challenges to Overcome
Q & A
2 Melissa Frick Minick, MS, CFE, CFCI
More than 20 years of experience in this field with college degrees and certifications:
• Master's of Science degree in Fraud and Forensics
Carlow University, Pittsburgh, PA
• Bachelor's of Science degree in Business Management
Eastern Oregon University, La Grande, OR
• Certified Fraud Examiner (CFE) since 2012
• Certified Financial Crime Investigator (CFCI) since 2014 • Certificate from FBI Citizens Academy, Portland Chapter, in 2013 Brandi Marsh, MS, CAMS, CFE, CFCI
More than 25 years of experience in this field with
college degrees and certifications:
• Master's of Science degree in Fraud and Forensics
Carlow University, Pittsburgh, PA
• Bachelor's of Science degree in Accounting
Eastern Oregon University, La Grande, OR
• Certified Anti-Money Laundering Specialist (CAMS) since 2009 • Certified Fraud Examiner (CFE) since 2013
• Certified Financial Crime Investigator (CFCI) since 2014 Marsh Minick, P.C. About Us
Marsh and Minick have been working together since 2003.

Specialize in forensic auditing, financial crime investigations, compliance and risk management for government and publicly-funded organizations. Nationwide services. 3 Registered in Oregon & Federal – Women Business Enterprise / Emerging Small Business 4 Examples of Past Forensic Engagements
City Governments
City of Portland’s Office of Community and Civic Life
Forensic Audit that Marsh Minick discovered there was mismanagement of $179k of public money granted by the City and through public endowments for residential and commercial community services. The audit revealed fraud had occurred, problems administrating public funding and non-compliance.

Report to the City:
https://www.opb.org/pdf/Forensic%20Audit%20of%20SWNI_1605822641636.pdf City of Pontiac, Michigan (Reference)
Forensic Audit of the entire citywide financials following allegations of wrongdoing by the former Mayor, Finance Director, and Executive Office staff. Examination resulted in $1.627 million impact of fraudulent use of grant funds, mishandling of contracts, improper invoicing and payments to contractors, and campaign finance violations of law.

Report to the City:
https://www.theoaklandpress.com/wp-content/uploads/2022/08/Forensic-Audit-Findings-Report-and-RecommendationsCity-of-Pontiac-Reduced-1.pdf City of Seattle’s Treasury Department
Fraud Risk Assessment and Internal Controls Evaluation after cash was missing from the City’s Treasury vault and cash handling procedures were not being followed. Recommended multiple improvements to the City’s Treasury operations by improving measures and practices to secure public money.

Teacher’s Retirement System of the City of New York
Fraud Risk Assessment and Internal Controls Evaluation of the public pension and retirement funds for City public school and university teachers. Recommended improvements to the City’s processes, revised policies and procedures, and delivered training to City employees.

Work Summary for City of Banning
5 Marsh Minick proposes a risk-based examination, which is a superior approach to focus on the area of greatest concern and perform targeted forensic analysis and testing to fully discover problems. 1) Planning & Information Gathering
• Planning and introductory meetings to assess concerns, risks, and discuss predicate and scope of work services • Request information, obtain and collect records/files onsite and remotely, and review information. • Conduct interviews with individuals that may have first-hand information, including former and current City officials, employees, or contractors, and collect any information they may have additionally. • Perform investigative inquiries in special access and public databases, online websites, from other public entities, and locate other information retained external to the City (such as vendor and contractor files). 2) Assessment, Analysis and Testing
* May continue interviewing and information gathering as needed to complete analysis and tests.

Phase 1:
• Review governing documents that require adherence or compliance including bylaws, policies, procedures, and contracts
• Review financial and fund data, accounts, ledgers, transactions, reports, management and operational records, supporting communications (emails), and internal City working papers generated during the handling of financial.

Phase 2:

Perform risk-based forensic analysis/testing to identify suspicious activity, detect fraud, abuse, waste and/or mismanagement, to determine the legitimacy of accusations, and determine the extent and magnitude of problems:
• If warranted, perform financial crime investigation efforts, such as forensic testing and admission seeking interviews 3) Deliverables
Report of Findings that is evidence and fact-based, not a matter of opinion that is comprehensive about the major incidents or problem areas, calculation of the dollar amount of financial impacts, quantification and extent of the findings.

Recommendations for improvement based on problem incidents and areas from the report of findings Verbal debrief or summary of the Report of Findings through a live virtual or in person meeting/attend City Council Timeline Proposed
6 Phase 1 is anticipated to take 3 months
If warranted, Phase 2 is anticipated to take an extra 1 month Deliverables take about 2 months to create and deliver through conclusion. • Status Report every 2 Weeks that details progress, upcoming activities, preliminary information and findings where possible, and financial updates
Possible Challenges to Overcome
• Data and information limitations
When information and data is refused, incomplete, missing, lost, destroyed or no longer retained. ▫ Perform investigative tactics to seek out, recover and/or recreate information and data needed, such as online searches, asking individuals interviewed for evidence, personally locating records from offices and/or city archives, requesting records from accountant, public record requests, possibility of subpoenas, and perform comparative analysis on an item-by-item basis. ▫ Forensic analysis and testing will be specifically designed with the most credible information and data available discovered.
• Uncooperative and/or hostility
When individual’s have objections or reluctance to interview, hostility or hesitation to answer questions and provide evidence.
▫ Flexible with the interview location or format for each individual. ▫ Begin interviewing with most informative least-likely to object individuals, then perform targeted interviews; and finish interviewing with the alleged perpetrator after all fact-finding has occurred (may only get one chance). ▫ Start each interview with general and background questions (soft-balls) as the interview progresses ease into direct questions after establishing some basic rapport with the person. 7 Often with forensic work there are challenges to overcome if encountered, such as:

Thank You!
Q & A
8 NOVEMBER 28, 2023

A PROPOSAL TO PROVIDE
PROFESSIONAL SERVICES FOR:

City of Banning, CA
Exhibit C
2 BDO | A Proposal to Provide Professional Services for City of Banning, CA BDO USA, P.C., a Virginia professional corporation, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.

November 28, 2023
Barbara Mason
Purchasing Manager
City of Banning
99 E. Ramsey St.

Banning, CA 92220
Dear Ms. Mason:

We thank you for the opportunity to present our qualifications for forensic accounting investigation services to the City of Banning (“the City”).

BDO has a unique culture rooted in similar core values as the City and ensures not only a continuous focus on our clients and professionals, but also a long-term commitment to quality service. All of our clients experience our highquality service approach characterized through direct access to top technical resources, and a streamlined project management structure delivered to drive the best possible value on every engagement.

Our professionals have extensive experience serving organizations like the City and have a proven track record of serving state and local government organizations. We apply a systematic and disciplined approach to ensure that any allegations or suspicions of fraud are, not only thoroughly investigated, but are traced to the root-cause so that potential weak points can be strengthened to mitigate future fraud risks.

The following proposal describing our capabilities outlines our understanding of the scope of services, our staff qualifications and past experience, and BDO’s time-tested approach to conducting investigations. BDO believes it can provide the City with services that are the best value for the money through cost efficient and streamlined project management structures, which pull in subject matter expertise when necessary while also eliminating unnecessary overhead to drive value for our clients. BDO also has on-demand access to thousands of resources across the country and can utilize them to further drive cost efficiencies.

BDO is willing to enter into a contract with the City. Please see our contract considerations in Appendix A on page thirty-three the proposal document.

Throughout the RFP review process, on behalf of BDO the contact person is Sly Atayee, who can be reached by email at [email protected] or by phone at 703-336-1689.

We will furnish any additional information upon request. Again, we thank you for this opportunity and we look forward to further demonstrating our capabilities and distinctly different service approach. Please do not hesitate to call if you would like to discuss our service model or if we can provide you with any additional information.

Sincerely,
Andrea Espinola Wilson
Managing Partner
Industry Specialty Services
Direct: 703-963-4275
Email: [email protected]
At BDO, our purpose is helping people thrive, every day. Together, we are focused on delivering exceptional and sustainable outcomes — for our people, our clients and our communities. Across the U.S., and in over 160 countries through our global organization, BDO professionals provide assurance, tax and advisory services for a diverse range of clients.

BDO is the brand name for the BDO network and for each of the BDO Member Firms. BDO USA, P.C., a Virginia professional corporation, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms: www.bdo.com Material discussed in this publication is meant to provide general information and should not be acted on without professional advice tailored to your needs. © 2023 BDO USA, P.C. All rights reserved.

NOVEMBER 28, 2023

A PROPOSAL TO PROVIDE
PROFESSIONAL SERVICES FOR:

City of Banning, CA
2 BDO | A Proposal to Provide Professional Services for City of Banning, CA Table of Contents
V.B.A Statement of Understanding and Approach 3
V.B.B Company Information 13
V.B.C Company Personnel 18
V.B.D Disclosure 25
V.B.E Evidence and References 27
Appendix 34
3 BDO | A Proposal to Provide Professional Services for City of Banning, CA V.B.A Statement of Understanding and Approach
4 BDO | A Proposal to Provide Professional Services for City of Banning, CA  An implementation plan that describes in detail (i) the methods, including controls by which your firm or entity manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work.  Detailed description of efforts your firm or entity will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Work" section.

Our Understanding
The City of Banning ("the City" or "City") is seeking comprehensive forensic accounting and investigation services, focusing on the City's Treasury functions, including reviewing financial activities from January 1, 2018, to June 30, 2023. The initial Phase 1 involves performing an initial assessment to determine if a more extensive investigation is warranted, and preliminary reporting to the City. This phase is critical to assess the scope and depth of any potential financial anomalies, and it will lay the groundwork for any subsequent detailed forensic analysis to be performed in Phase 2.

In Phase 2, our task would be to perform forensic analysis to identify, investigate, and quantify any irregular financial anomalies, assess the design of the current system of internal controls, recommend control improvements, and provide final reporting to the City.

BDO understands that although there have not been any instances of known fraud, it is important to the City and its residents that a thorough review is completed to provide confidence that precious resources are being utilized appropriately. It is also important to the City that the current system of internal controls be assessed to identify and mitigate potential risk areas that could result in future vulnerabilities.

The project may evolve based on initial findings, with potential additional services needed, such as expert witness support. Additionally, this entails a thorough examination of all relevant documents and transactions, and liaising with various departments to gain a comprehensive understanding of the City's financial processes and controls. 5 BDO | A Proposal to Provide Professional Services for City of Banning, CA PDF Mining & Extraction
 CaseWare IDEA
 Able2Extract
 DataSnipper
Data Collection, Preparation & Analytics
 Microsoft SQL Server & AWS GovCloud
 Trifacta Data Wrangler
 BDO Proprietary Python, Ruby, SQL and VBA
Scripts
Tools & Technology for Investigations
BDO also utilizes an array of third-party and internally developed proprietary tools to automate tasks whenever possible so we can more efficiently and expediently support forensic investigations; these tools include, but are not limited to:

BI Visualizations
 PowerBI
 Qlik Sense
Cloud
 Tableau
Summary Investigation Technical Approach
BDO utilizes a standard, engagement-tested approach for conducting forensic accounting and investigations. This ensures uniformity across our work, provides a comprehensive methodology to uncover the facts, and allows us to prepare meaningful reports for our clients. Our approach also provides the City with a roadmap to move past any identified misconduct and implement the proper mitigating control procedures. Our goal is to give the City confidence that its assets are being used to support its purpose and objectives, and not for unauthorized purposes.  An implementation plan that describes in detail (i) the methods, including controls by which your firm or entity manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work.  Detailed description of efforts your firm or entity will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Work" section.

BDO GOAL: ALLOWING YOU TO REFOCUS

ON YOUR PURPPOSE/OBJECTIVES
PHASE 1 PHASE 2

1. Information
Gathering
and Analysis of
Existing Controls
and Gaps

2. Pre-Analytic
Procedures

3. Investigation
Interviews/
Site Visits

4. Preliminary
Reporting

5. Forensic
Examination

6. Evaluating
Controls and
Developing
Recommendations

7. Final
Reporting
6 BDO | A Proposal to Provide Professional Services for City of Banning, CA Detailed Investigation Technical Approach
BDO’s forensic accounting and investigation
methodology comes from decades of experience, both
within the industry and as external investigators.

This section provides a general outline of the phases
and sub-phases of our investigative approach, the
objectives of each sub-phase, and example activities
within each sub-phase.

Every investigation will have its own nuances and the
activities will vary; however, our standard approach
allows us to gather and assess the necessary
information to ensure all the facts are uncovered, and
any anomalies are properly reviewed and addressed in
a timely and cost-effective manner.

BDO anticipates that its Phase 1 assessment will be
completed within the allotted four-month timeframe.

PHASE 1 – INITIAL ASSESSMENT

1. Information Gathering and Analysis of Existing
Controls.
a) Objective
i. Gain an understanding of the:

1. Financial anomalies known to date.

2. System of internal controls within the City’s
Treasury function and related functions.
ii. Gather relevant data for further analysis.
b) Example activities to be conducted
i. Conducting kickoff meeting with relevant/key City
of Banning personnel to understand known financial
anomalies.
ii. Gaining an understanding of the internal controls
which were, or were not in place, in order to
understand any weaknesses which could be
exploited.
iii. Preliminary interviews with select staff to
understand how key processes work in practice and
understand if there are any known concern areas.
iv. Development and submission of Provided by Client
(“PBC”) List. Requests may include, but are not
limited to:

1. Relevant policies and procedures,

2. Process maps,

3. Organizational charts,

4. Financial data (e.g., financial statements,
bank statements, detailed general ledger,
chart of accounts) or read-only system access,

5. Payment registers (e.g., accounts payable,
payroll),

6. Fringe benefits data,

7. Standard reports (e.g., financial, audits) and
reconciliations,

8. Employee data (e.g., employee
contracts/agreements, timesheets,
current/past rosters, human resources
employee file, job descriptions, compensation
reports), or

9. Email/SMS/WhatsApp communications.
v. Development of profile for potential fraudster(s),
identifying characteristics and components
associated with the fraud triangle.
vi. Facilitating stakeholder communications
considerations and planning.
 An implementation plan that describes in detail (i) the methods, including controls by which your firm or entity manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work.  Detailed description of efforts your firm or entity will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Work" section. 7 BDO | A Proposal to Provide Professional Services for City of Banning, CA Detailed Investigation Technical Approach

2. Pre-Analytic Procedures
a) Objective
i. Analyze data/documentation provided by the City
in order to preliminarily assess any known and
unknown financial anomalies.
b) Example activities to be conducted
i. Performing custom data analytics to identify
trends, anomalies in data.
ii. Performing judgmental and/or statistical sampling
(whichever appropriate) and conduct testing of
specific transactions (financial and non-financial),
including review of supporting documentation to
ensure proposed and authorized payments match
actual disbursements.
iii. Reconciliation of accounts, including reconstruction of prior reconciliations already completed.
iv. Horizontal Analysis – Period to period analysis of
account balances.
v. Vertical Analysis – Reviewing of each line item on a financial statement as a percentage of another line
item in comparison to prior periods.
vi. Fair Market Analysis – Conducting analysis of
specific goods/services in local marketplace,
including getting bids from local vendors, to
establish market-level prices and then compare to
prices charged to the City.
vii. Performing tracking of misconduct, including
review of general ledger detail and billing reports,
to determine if donor/external funder funds were
misappropriated

3. Investigative Interviews and Site Visits
a) Objective
i. Gain a further understanding of observed
anomalies from sub-phase 2.
ii. Obtaining any knowledge (direct or indirect) of
known fraudulent activity perpetrated, alleged, or
suspected by the interviewee and requesting any
relevant files or communications to support claims
made.
iii. Corroborate facts on the ground.
b) Example activities to be conducted
i. Performing detailed walkthroughs with identified
personnel involved in potentially compromised
processes and related control procedures to
understand how the processes operate in practice,
which may be different than
documented/established procedures.
ii. Conducting initial investigative interviews.

Interviews can be conducted virtually any time
during an investigation, depending on the urgency
of the need to interview suspicious parties. For
example, if the suspicious parties are at risk of
leaving/resigning/fleeing, their interviews could
be expedited at the start of investigation
proceedings, however it is best practice to hold
these interviews until the end.
iii. Reviewing identified anomalies in data, abnormal
transactions, unauthorized transactions with
interviewees and obtaining their explanations as to
how these anomalies may have taken place.
iv. Interviewing related third parties (e.g., vendors,
beneficiaries, citizens), depending on the nature
of the identified misconduct.
v. Completing site visits at partner, affiliate, vendor, or other third-party offices related to observed
anomalies
 An implementation plan that describes in detail (i) the methods, including controls by which your firm or entity manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work.  Detailed description of efforts your firm or entity will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Work" section. 8 BDO | A Proposal to Provide Professional Services for City of Banning, CA Detailed Investigation Technical Approach

4. Preliminary Reporting
a) Objective
i. Ensure identified the City stakeholders are aware of investigation methodology, progress, proceedings,
and preliminary findings.
b) Example activities to be conducted
i. Providing regular status update reports which
include activities accomplished, to be
accomplished, billing status, and other relevant
data points determined by the City.
ii. Conducting frequent (e.g., weekly, bi-weekly,
monthly) and ad-hoc check-in phone calls to discuss
investigation progress.
iii. Examples of Preliminary Report deliverables:

1. Oral presentation of preliminary findings to date,
as requested by the City

2. Preliminary reporting to the City Council (as
requested by the City ) to report significant
findings, or to obtain authorization for any
expansion of the scope of services, if required.

3. Other preliminary reports as requested by the
City
iv. Note – The City will be informed of progress as
frequent as desired and BDO’s preliminary
reporting can happen at any part of Phase 1,
especially if strong suspicions of misconduct are
present.
 An implementation plan that describes in detail (i) the methods, including controls by which your firm or entity manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work.  Detailed description of efforts your firm or entity will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Work" section.

PHASE 2 – DETAILED ANALYSIS

5. Forensic Examination
a) Objective
i. Further investigate observed anomalies identified
in Phase 1.
ii. Provide quantifiable measure for the likelihood
and/or magnitude of the misconduct which was
observed/verified in Phase 1.
iii. Note – This sub-phase will only be applicable if
anomalies are found in Phase 1 which require
further analysis. The scope the investigation
procedures in this sub-phase will be
established/approved by the City.
b) Example activities to be conducted
i. Performing further analysis on identified areas of
concern, including detailed reconciliations,
document analysis, funds tracing, etc…
ii. Performing further investigative interviews,
including follow up discussions and admissionseeking interviews. iii. Determining potential complicit or negligent
parties related to observed misconduct.
iv. Providing Rough Order of Magnitude (“ROM”) to
summarize impact of misconduct.

1. Where determination of the actual misconduct
value involves additional extensive investigation,
we will discuss with the City and then note our
approach for these cases, which could involve
additional follow up on the investigation,
additional testing, ROM, and extrapolating
findings as options.
v. Extrapolating findings of fraudulent activity from
sample review to a larger population for periods
and transactions not tested.
vi. Determining non-financial impact, such as funder
compliance and possible disclosures which need to
be made.
9 BDO | A Proposal to Provide Professional Services for City of Banning, CA Detailed Investigation Technical Approach

7. Final Reporting
a) Objective
i. Ensure identified City stakeholders are aware of
investigation findings and next steps.
b) Example activities to be conducted
i. Examples of Final Report deliverables:

1. Final reporting (formal or oral) on findings to
date, as requested by the City key
stakeholders.

2. Detailed report with complete findings of
investigation proceedings, including
schedules, appendices, and accompanying
work papers

3. Reporting to the City Council (as requested
by the City ) to report significant findings, or
to obtain authorization for any expansion of
the scope of services, if required.

4. Other reports as requested by the City

5. Management-level reports with executive
summary of findings, recommendations of
improvements, and next Phases.

6. Audit Committee report and/or oral
presentations discussing findings from
investigation proceedings.

7. Specialized reports for donors.
 An implementation plan that describes in detail (i) the methods, including controls by which your firm or entity manages projects of the type sought by this RFP; (ii) methodology for soliciting and documenting views of internal and external stakeholders; (iii) and any other project management or implementation strategies or techniques that the respondent intends to employ in carrying out the work.  Detailed description of efforts your firm or entity will undertake to achieve client satisfaction and to satisfy the requirements of the "Scope of Work" section.

6. Evaluating Controls and Developing
Recommendations (if applicable)
a) Objective
i. Determine where control weaknesses existed
which may have allowed misconduct to be
perpetrated, or present opportunity for fraud to
occur, and provide control improvement
recommendations which properly mitigate future
risks of misconduct.
ii. Note – This sub-phase will only be applicable if
control weaknesses are found in Phase 1.
b) Example activities to be conducted
i. Developing Gap Assessment matrix detailing where
breakdowns in control procedures design or
execution exist. Conducting risk assessment on
compromised processes and providing “Heat Map”
with risk ratings based on likelihood, impact, and
pervasiveness of the risks observed.
ii. Providing detailed recommendations on control
improvements, including changes to documented
policies and procedures and addition and/or
redesign of control procedures.
iii. Developing process flow diagrams, including
proposed future states which include the
implementation of improved control procedures.
iv. Drafting revised policies and procedures.
v. Conducting training on proper internal control
practices, fraud awareness, etc.. As part of a potential Phase 3, BDO is available to support the City with
analysis/reporting related to assisting
the City to collect any potentially
recoverable losses. The City will
provide prior approval prior to the
commencement of any expanded
scope procedures.
10 BDO | A Proposal to Provide Professional Services for City of Banning, CA  Detailed project schedule, identifying all tasks and deliverables to be performed, durations for each task, and overall time of completion, including a complete transition plan. Include your plan to deal with fluctuation in service needs and any associated price adjustments.

Project Schedule
We estimate the earliest start date to be January 2024 and anticipate the Phase 1 work to be complete within the allotted 4 months (as referenced in the RFP). This timeline assumes that we are able to complete our work efficiently.

In order to do so, we must be able to schedule meetings timely, receive responses to questions and requests regularly, and have the collaboration and cooperation of the City's selected engagement team.

The time estimate below is only for Phase 1. Upon the completion of Phase 1, and with the approval from the City, BDO will provide additional time and cost estimates for Phase 2 and 3 work, if they are necessary.

Project Management
Months
Phase 1 1 2 3 4

1. Information
Gathering & Controls
1 Month

2. Pre-Analytic
Procedures
1 Month

3. Investigative
Interviews & Site
Visits

1.5 Months

4. Preliminary
Reporting .5
Months
11 BDO | A Proposal to Provide Professional Services for City of Banning, CA  Detailed description of specific tasks you will require from City staff. Explain what the respective roles of City staff and your staff would be to complete the tasks specified in the Scope of Work.

Tasks for City Staff/Use of City Facilities
Our forensic accounting and investigation services may necessitate certain interactions with City staff, depending on the direction and findings of our initial analyses. While the exact nature and extent of this assistance remain to be determined, it could potentially include providing access to financial records, support in coordinating interviews with personnel, and guidance in navigating City databases and systems. It could also include actual fact-gathering interviews. As shown in the section titled Project Management Structure on page nineteen, BDO will assign a full-time Project Manager to drive project completion and to mitigate any administrative burden of the City’s personnel. We aim to work collaboratively with the City staff, ensuring that any involvement is as streamlined and minimally intrusive as possible.

In terms of utilizing City-owned facilities or properties, our current plan maintains flexibility. Depending on the progress and specific requirements of our investigation, we might explore the possibility of using secure office space within a City-owned building for our team's operations while they are on-site. This would facilitate close collaboration with City staff and ensure the confidentiality of our work. However, this is only a potential scenario, and our use of such facilities will be evaluated and discussed in detail as our project requirements become clearer. In sensitive situations, such as admission-seeking interviews, we prefer to take our work off-site.

We do not anticipate requiring any City property or space that would require the City to take on additional cost for this engagement. We expect to be able to complete the majority of the work remotely; however, during the course of the engagement, circumstances may require temporary access to City facilities or equipment. For example, should we need to interview staff on-site, we would request the use of conference room space. Similarly, if our team needs to review records that are solely kept as hard copy documents, we will request access to those documents as well as an on-site workspace to review the files.
 Proposers are also requested to identify any City owned facilities or property which Proposer would propose to use or lease, purchase, or rent from the City in connection with the services to be performed, including information about the terms of any proposed lease, purchase or use of such equipment and facilities, and how this proposed structure affects the overall cost proposal to the City, if applicable. 12 BDO | A Proposal to Provide Professional Services for City of Banning, CA At BDO, we tailor each approach for our client since there is rarely a one-size-fits-all solution. This is especially true in forensic examinations, which often require out-of-the box thinking and innovative analysis techniques. As we learn more about your organization, we will be able to hone our approach to your needs. Below are a few examples of how this flexible approach has benefitted similar clients.

BDO Helps Company Investigate Qui Tam Allegations Concerning Misclassified Costs Client Need In support of a qui tam matter, a company engaged BDO to perform a forensic investigation of claims alleging widespread cost misclassification and indirect cost rate manipulation over the life of an 8-year grant program. BDO Solution In support of this engagement, BDO:
• Analyzed over eight years of GL transactions and subsidiary ledger data to identify high-risk transactions of interest and visualized results. • Performed 100% review of high-risk, high-value transactions for allowability and appropriate classification, while testing the remaining population of transactions in accordance with regulatory sampling guidance.
• Conducted statistical sampling and testing of moderate risk areas • Developed model to quantify the cost impact of unallowable/misclassified transactions by funding source.
• Prepared expert report for presentation of findings and quantified potential exposure to the Office of Inspector General (OIG). BDO Supports Organization with Investigation of Time Charging and Procurement Irregularities Client NeedA large organization with multiple federal government contract and grants engaged BDO, under the privilege of counsel, to perform a forensic investigation of time mischarging, vendor overpayment, shell company transactions, conflicts of interest, and irregularities in contracting with small businesses. BDO Solution As part of this engagement, BDO:
• Analyzed multiple years of time charging data to determine whether individuals supporting multiple programs concurrently were mischarging time dependent on available program budget.
• Leveraged CaseWare Idea to efficiently extract pertinent information from PDF documentation and integrated with ERP procurement data to evaluate purchasing irregularities.
• Quantified potential exposure and provided expert report of findings to counsel and executive leadership.

BDO Assists Large Healthcare Company with Analysis of Corporate Credit Card Transactions Client Need A large healthcare company engaged BDO to investigate whether director-level employees were inappropriately charging personal expenses on company-provided credit cards. BDO Solution
During this engagement, BDO:
• Worked directly with the client’s IT personnel to extract and load three years of expense and credit card data into a SQL database for analysis. • Utilized Able2Extract to mine additional attributes from credit card statements to facilitate identification of potential personal charges. • Flagged transactions of interest and imported into BDO’s proprietary forensic analytics tool to research potential issues in real-time with client. • Quantified potential exposure and provided report of findings to client.  Proposers are encouraged to provide additional innovative and/or creative approaches for providing the service that will maximize efficient, cost-effective operations or increased performance capabilities. In addition, the City will consider proposals that offer alternative service delivery means and methods for the services desired.
13 BDO | A Proposal to Provide Professional Services for City of Banning, CA V.B.B Company Information
14 BDO | A Proposal to Provide Professional Services for City of Banning, CA o This section shall include contact person information, address and telephone number of the company main office and branch offices. Each Company shall identify itself as to the type of organizational entity (corporation, sole proprietorship, partnership, joint venture, etc.). Any supplemental information that Company believes may be pertinent to the selection process may be provided.

List of Company Locations
Chicago, IL; Oakbrook, IL; Huntsville, AL; Anchorage, AK; Phoenix, AZ; Los Angeles, CA; San Diego, CA; San Jose, CA; Orange County, CA; San Francisco, CA; Boulder, CO; Denver, CO; Greeley CO; Stamford, CT; Wilmington, DE; Washington D.C.; Boca Raton, FL; Miami, FL; Tampa, FL; Fort Lauderdale, FL; Orlando, FL; West Palm Beach, FL; Jacksonville, FL; Atlanta, GA; Rosemont, IL; Indianapolis, IA; Baltimore, MD; Columbia, MD; Boston, MA; Gardner, MA; Detroit, MI; Grand Rapids, MI; Kalamazoo, MI; Minneapolis, MN; St. Louis, MO; Las Vegas, NV; Cherry Hill, NJ; Woodbridge, NJ; Long Island, NY; New York, NY; Valhalla, NY; Charlotte, NC; Raleigh, NC; Akron, OH; Cleveland, OH; Columbus, OH; Cincinnati, OH; Tulsa, OK; Philadelphia, PA; Pittsburgh, PA; Greenville, SC; Memphis, TN; Nashville, TN; Austin, TX; Fort Worth, TX; San Antonio, TX; Dallas, TX; Houston, TX; Salt Lake City, UT; Norfolk, VA; Richmond, VA; Seattle, WA; Spokane, WA; Madison, WI; Milwaukee, WI.

BDO USA, P.C., a Virginia professional corporation, is the U.S. Member of BDO International Limited, a UK company limited by guarantee, which forms part of the international BDO network of independent member firms, the world’s fifth largest accountancy network. BDO International employs over 111,300 employees, has over 1,800 worldwide offices in over 160 countries. Our worldwide revenue last year topped $12.8 billion.

Contact Person Sly Atayee – Project Manager
Contact Information 703-965-2792
[email protected]
BDO Headquarters Headquarters: Chicago Office
330 N. Wabash Ave., Suite 3200
Chicago, IL 60611
While we are headquartered in
Chicago BDO serves clients
nationally across more than 75
offices in the U.S, including our
Los Angeles office.
15 BDO | A Proposal to Provide Professional Services for City of Banning, CA About BDO
As a global business advisor, we deliver insight-driven perspectives through a comprehensive array of assurance, tax, and advisory services to help you navigate challenges, uncover opportunities, and adapt to the constantly changing business environment.

BDO USA *
$2.82
U.S. Revenue

13.3%
Increase over last year
75+
Offices
860
Principals
12,000+
Total Personnel
BDO USA *
$2.82
U.S. Revenue

13.3%
Increase over last year
75+
Offices
860
Principals
12,000+
Total Personnel
BDO INTERNATIONAL **
$12.8
Global Revenue
160+
Countries
1,800+
Offices
7,744
Partners and Principals
111,300+
Total Personnel
BDO INTERNATIONAL **
$12.8
Global Revenue
160+
Countries
1,800+
Offices
7,744
Partners and Principals
111,300+
Total Personnel ** BDO International statistics for the year ended September 30, 2022.

Locations include exclusive alliances of BDO Member Firms. * BDO USA statistics for the year ended April 30, 2023. o This section shall include contact person information, address and telephone number of the company main office and branch offices. Each Company shall identify itself as to the type of organizational entity (corporation, sole proprietorship, partnership, joint venture, etc.). Any supplemental information that Company believes may be pertinent to the selection process may be provided. 16 BDO | A Proposal to Provide Professional Services for City of Banning, CA o The proposer should provide an affirmative statement that it is independent of the City as defined by generally accepted auditing standards and the U.S. General Accounting Office's Government Auditing Standards (1994).

The City’s proposed engagement team is independent as defined by current professional standards. We confirm BDO currently has no interest and shall not acquire any interest—direct or indirect—which would conflict in any manner or degree with the performance of our services under the contract. 17 BDO | A Proposal to Provide Professional Services for City of Banning, CA o The Proposal shall identify any litigation, mediation, or arbitration, regarding the performance of any services similar to the Services, in which the Company has been involved in the past five (5) years. If the Services require a license or certification, the Proposal shall include any claims or disciplinary action taken against Company or any of Company’s key personnel within the past five years.

Litigation
During the past five years, BDO USA has been a defendant in a number of actions, proceedings, claims or complaints.

The volume of claims and suits is normal level of litigation for a national accounting practice. The ultimate outcome of any claim, proceeding, or lawsuit cannot be predicted with certainty, and sometimes BDO settles these matters to avoid the cost of future litigation. In addition, BDO carries professional liability insurance to protect against costs associated with claims.

The outcome of the matters that have come to a conclusion, either by settlement or otherwise, both individually and in the aggregate, have not had a material adverse effect on the ability of BDO to serve clients, or on the consolidated financial position of BDO.
18 BDO | A Proposal to Provide Professional Services for City of Banning, CA V.B.C Company Personnel
19 BDO | A Proposal to Provide Professional Services for City of Banning, CA o This section shall contain names, contact numbers and description of experience, including licenses and/or certifications, of all key personnel who would be assigned to perform the Services. Members of the Company’s professional team (managers, contact person, etc.) should be identified by name, title, phone number, and description of the portion of work they will be assigned to perform under this Agreement. Also include major subcontractors (if any) and their degree of involvement in this program. If the Company is including any subcontractors, the Company shall identify how long the Company has worked with the subcontractor.

Project Management Structure

A STREAMLINED STRUCTURE THAT DRIVES BEST VALUE FOR MONEY BDO can deploy a variety of teams and resources to meet the needs of any particular investigation. We provide our clients with deep technical knowledge, critical forensic investigation techniques, and state and local government industry expertise. BDO prides itself on cost efficiency, which is realized through the efficient use of select experts on each engagement.

BDO establishes a streamlined project management structure for each engagement. Below we have the proposed management structure for this engagement, which can either be expanded, utilizing the thousands of staff resources at our disposal to ensure a comprehensive and timely analysis, or pared down to ensure cost effectiveness.

Nic will provide industry subject matter expertise around the inner-workings of municipal governments. He will also provide a second layer review for all deliverable work products to ensure the high quality of deliverables.

As the Project Director, and with extensive knowledge of state and local government operations, Corey will provide oversight on all project activities and reporting. Corey will act as the liaison to City Management, Board of Directors and any sub-committees (e.g., Audit Committee, Risk Committee, etc..).

RESPONSIBILITIES OF THE PROJECT DIRECTOR
Sly, an expert in forensic investigations, will act as the main point of contact for BDO and will lead the day-to-day operations of the investigation. This includes driving the completion of investigation activities, developing project plans, overseeing project staff, ensuring objectives are met, ensuring timelines/deadlines remain in focus, and deliverables have proper first layer reviews.

RESPONSIBILITIES OF THE PROJECT MANAGER

RESPONSIBILITIES OF THE INDUSTRY SUBJECT MATTER EXPERT
David will provide subject matter expertise, both from the forensic analysis and state/local government industry perspectives. As a CFE, David has extensive experience with investigation and risk management techniques. He also regularly advises state and local governments on aspects of financial management, including developing robust financial management systems for billions of ARPA dollars.

RESPONSIBILITIES OF THE TECHNICAL SUBJECT MATTER EXPERT BDO has access to thousands of staff-level resources which are available to perform analyses, document review and more at an efficient cost to the City.

RESPONSIBILITIES OF THE STAFF-LEVEL RESOURCES
20 BDO | A Proposal to Provide Professional Services for City of Banning, CA  Creation of government planning guidance
 Production of INGOs standards and best practices in service delivery  Modernization of legacy CRM and financial assistance systems  Design and implementation of client experience strategies  Implementation of safety standards and procedures
Corey is dedicated to superior client experience and strong partnerships. Corey sees client experience as the foundational of service and has developed partnerships within all levels of government, community-based organizations, faith-based organizations, the private sector, foundations, international NGOS, and the United Nations.

Navigating the circles of academia, policy, and practice is where Corey thrives.

Corey also serves as a Senior Fellow at the Disaster Resilience Leadership Academy at Tulane University.

PROFESSIONAL AFFILIATIONS
International Association of Emergency Managers
International Humanitarian Studies Association
National Voluntary Organizations Active in Disaster

EDUCATION
M.S., International Development, Tulane University
B.A., Communications, California Baptist University
[email protected]
Direct: 703-770-1015
Mobile: 571-385-6132
8401 Greensboro Drive
Suite 800
Mclean, VA 22102
Tel: 703-893-0600
Fax: 703-893-2766
www.bdo.com

COREY EIDE
Managing Director, Industry Specialty Services

EXPERIENCE
Corey Eide supports clients’ investment in resilience. As Director, Industry Specialty Services, Corey serves a wide variety of clients in federal, state, tribal, local, territory government, and nonprofit organizations. Corey works across the competencies and capabilities of BDO to provide tailored services for unique client needs.

Prior to joining BDO, Corey served in leadership roles in nonprofit and international government organizations where he led strategic planning initiatives, change management, and enterprise program design and delivery. Over the past 15 years, Corey has supported capacity building in communities across the US, provided technical assistance following disasters, and served as a senior agency representative to FEMA and the World Health Organization. Corey has overseen the implementation of government grants, designed financial controls, and crafted nimble learning solutions.

Specific examples include the:
21 BDO | A Proposal to Provide Professional Services for City of Banning, CA  Sly has passed all parts of the Certified Fraud Examiners exam and is waiting to receive his official license
American Bar Association, Young Lawyers Division

EDUCATION
B.B.A., Finance, Cum Laude, James Madison University

LANGUAGE PROFICIENCIES
Bilingual proficiency in English and Farsi (speaking)
[email protected]
Direct: +703-336-1689
Mobile: +703-965-2792
8401 Greensboro Drive
Suite 800
McLean, VA 22102
Tel: +703-893-0600
Fax: +703-893-2766
www.bdo.com

SLY ATAYEE
Senior Manager, Industry Specialty Services

EXPERIENCE
Sly Atayee is a Senior Manager in BDO’s Industry Specialty Services practice, focused on assisting clients with various aspects of forensic and financial analysis. Examples of his in-depth work experiences includes forensic and statistical analysis, fraud investigations, internal control assessments, financial process redesign, complex cost recovery calculations, defective pricing analysis, policy and procedure development and support, and assisting with other various tasks.

Sly has in-depth experience working within the COSO Internal Control Framework and developing robust control systems for a wide range of nonprofit organizations.

Sly has led numerous forensic investigations both domestically in the US, and internationally in Africa, Asia and the Middle East. His experience includes leading project teams in large-scale investigations to quantify potential losses suffered from fraud, waste or abuse and also developing and implementing corrective action plans to ensure fraud risks are properly mitigated and addressed in the future.

Sly also has experience in litigation support, substantiating costs through the collection of supporting documentation, performing data analytics in order to calculate and quantify losses and economic damages, whether suffered through tort, breach of contract, fraud, or misconduct, as well as market analysis for procurement.

Many of Sly’s engagements have been privileged and were conducted through the client’s legal counsel.

PROFESSIONAL AFFILIATIONS
Member, Association of Certified Fraud Examiners

22 BDO | A Proposal to Provide Professional Services for City of Banning, CA

EXPERIENCE
Nic Nunn-Faron serves as Manager in BDO’s State & Local Government Advisory practice, where he has the opportunity to apply varied experience in policy development, planning, risk management, and grants administration to meet the resilience and sustainability needs of public, private, and nongovernmental agencies throughout the United States. Over the past 10 years Nic has been charged with the management and oversight of engagements for city, county, state, tribal, territorial, federal government, higher education, and nonprofit organizations.

Nic has managed over a half dozen COVID-19 engagements with state and local governments, developing the strategy, management infrastructure, and oversight for their Stimulus Funds.

He serves as a key resource for the firm’s Environmental, Social, and Governance (ESG) Advisory capability develop team, where he is able to utilize his background in sustainable development and enterprise risk management to advance the services by which BDO assists its clients in becoming more resilient against and better stewards of the environment and society. His primary area of focus is in utilizing sustainability reporting principles to assist jurisdictions in implementing infrastructure and development strategies.

Prior to joining BDO, Nic supported program management operations for local municipalities, led technical response operations following natural disasters, served as an agency field liaison to FEMA, coordinated with the United Nations cluster system, and responded as part of over a dozen emergency operations throughout the United States and abroad.

PROFESSIONAL AFFILIATIONS
Global Reporting Initiative, Certified Sustainability Professional (CSP) International Association of Emergency Managers, Certified Emergency Manager (CEM) Disaster Recovery Institute International, Certified Business Continuity Professional (CBCP)
International City/County Management Association

EDUCATION
M.S., International Development, Tulane University
B.A., Public Policy/Urban Affairs, Saint Louis University

NIC NUNN-FARON, CEM, CSP, CBCP
Senior Manager, Industry Specialty Services
[email protected]
Direct: 314-889-1183
Mobile: 636-485-5297
101 S Hanley Rd
Suite 800
St. Louis, MO 63105
Tel: 314-889-1100
Fax: 314-889-1101
www.bdo.com
23 BDO | A Proposal to Provide Professional Services for City of Banning, CA  Investigate and resolve matters related to regulatory compliance (including false claims), employee misconduct, misappropriation of funds, fraudulent financial reporting, and whistleblower complaints.
 Respond to changing regulatory requirements and evaluate regulatory compliance.  Assess enterprise risks (including fraud risks) and facilitate discussions with senior leaders regarding mitigation and monitoring of the organization’s risk landscape.  Evaluate business operations, policies and procedures, and overarching control environments and implement changes that foster enhanced efficiency, effectiveness, and control.
 Develop, implement, and improve practices related to grants and contracts administration and monitoring.

David also presents at numerous conferences on such topics as regulatory compliance, internal controls, cost allowability, fraud prevention, risk assessments, and corporate governance.

PUBLICATIONS
 “Emerging Audit Trends – What You Need to Know” NCURA Magazine – August 2015  “Emerging Audit Trends – What You Can Do to Prepare” NCURA Magazine – October/November 2015
 “Best Practices for Building a University Audit Plan” ACUA College and University Auditor Journal – Winter 2020

PROFESSIONAL AFFILIATIONS
Association of Certified Fraud Examiners
Institute of Internal Auditors (Board Member, Northern Virginia Chapter) National Council of University Research Administrators

EDUCATION
B.S. Commerce (concentrations in Finance and Management), University of Virginia, McIntire School of Business
[email protected]
Direct: +703-3770-1008
Mobile: +703-862-7479
8401 Greensboro Drive
Suite 800
McLean, VA 22102
Tel: +703-893-0600
Fax: +703-893-2766
www.bdo.com

DAVID CLARK, CIA, CFE, CRMA
Managing Director, Industry Specialty Services

EXPERIENCE
David Clark is a Managing Director in BDO’s Non-Profit Advisory Practice. He advises clients on a wide range of issues including matters of organizational strategy, regulatory compliance, cost allowability and recovery issues, risk management, and internal control and operational assessments. His work includes extensive experience supporting federal funding recipients including colleges and universities, non-profits, research institutions, and government contractors.

David offers over 13 years of experience providing guidance and support for organizations of all sizes in improving compliance, governance, operations, and risk management activities. He often works with clients to evaluate and enhance business processes and control environments, as well as evaluating compliance with federal spending regulations. Prior to joining BDO, David served as a senior audit manager at a leading financial institution and served as a Director in the Higher Education and Research Institutions consulting practice of an international accounting firm. David’s deep knowledge of compliance, risk, and controls and industry experience allows him to provide personal, practical solutions for clients.

David's specific experience includes helping organizations:
24 BDO | A Proposal to Provide Professional Services for City of Banning, CA o An affirmative statement should be included that the proposer and all assigned key professional staff are properly licensed to practice in California.

Where required, our proposed team members have the appropriate licenses and certifications to perform the requested work in California.
25 BDO | A Proposal to Provide Professional Services for City of Banning, CA V.B.D Disclosure
26 BDO | A Proposal to Provide Professional Services for City of Banning, CA o Please disclose any and all past or current business and personal relationships with any current Banning elected official, appointed official, City employee, or family member of any current Banning elected official, appointed official, or City employee. Any past or current business relationship may not disqualify the firm from consideration.

We have made appropriate conflict of interest inquiries in accordance with our quality assurance procedures, and can confirm that our appointment by you will not give rise to any conflicts. 27 BDO | A Proposal to Provide Professional Services for City of Banning, CA V.B.E Evidence and References
28 BDO | A Proposal to Provide Professional Services for City of Banning, CA o The Proposal must demonstrate that the Company, or its key personnel, meets the minimum experience requirement in #Prerequisites with a legally registered business name, that provides services of a similar type and scope as described in the Scope of Services. A Company shall not have filed for bankruptcy under any business name over the past five (5) years.

III.A Years of experience
Have at least ten (10) years’ of experience, within the past ten (10) years under a legally registered business name, in providing services of a similar type and scope as described in the Scope of Services. Have not filed for bankruptcy under any business name over the past five (5) years.

BDO USA, P.C. is a Virginia professional corporation. In our more than 110-year history, BDO has never filed for bankruptcy.

As noted, in our proposed team’s resumes, BDO will bring significant experience to this engagement:
 Corey Eide has over 15 years of exceptional experience, establishing himself as a highly accomplished professional in the field. His extensive expertise and unwavering commitment have made him a trusted leader in the industry.  Sly Atayee has over 8 years of invaluable experience at BDO, establishing himself as a highly accomplished Senior Manager in the Industry Specialty Services practice. He has consistently demonstrated his exceptional skills in managing complex investigations and delivering outstanding results. Sly's role as a Senior Manager has involved overseeing a diverse range of projects, including financial advisory, risk management, and business consulting.  Nic Nunn-Faron brings 10-plus years experience with BDO managing and overseeing engagements for city, county, state, tribal, territorial, federal government, higher education, and nonprofit organizations.  David Clark offers over 13 years of experience providing guidance and support for organizations of all sizes in improving compliance, governance, operations, and risk management activities. 29 BDO | A Proposal to Provide Professional Services for City of Banning, CA History of BDO
Since our founding, the BDO
story has been one of continuous
response to our clients’ and peoples’
ever-changing needs.

Our history reflects the continuity and stability of a
network that has developed so successfully over more
than fifty turbulent years. Equally, our partners and
staff know that they are working for a well-established organization that is built upon clear values and a
successful past.

But for BDO, it does not stop there. We live and
operate in a challenging environment characterized by
an unpredictable global economy, ongoing political
upheavals, and the ever-present threat of terrorism
In common with all businesses, we must take strategic
decisions to ensure that we can continue to attract
global clients, enter new markets, improve
performance, and manage risk. We have invested in
global infrastructure technology and are ready—this is
what sets us apart from our competitors.

Above all, we will continue to deliver the exceptional
client service for which we are known, because this is
what differentiates us in our market. Technical
excellence is a given, but our exceptional client
service program is embedded in our strategy and
undertaken on a truly global level.
o The Proposal must demonstrate that the Company, or its key personnel, meets the minimum experience requirement in #Prerequisites with a legally registered business name, that provides services of a similar type and scope as described in the Scope of Services. A Company shall not have filed for bankruptcy under any business name over the past five (5) years.

III.A Years of experience
Have at least ten (10) years’ of experience, within the past ten (10) years under a legally registered business name, in providing services of a similar type and scope as described in the Scope of Services. Have not filed for bankruptcy under any business name over the past five (5) years.
30 BDO | A Proposal to Provide Professional Services for City of Banning, CA Public Sector Industry Credentials

THOUGHT LEADERSHIP AND CLIENT

EDUCATION
We demonstrate our knowledge and experience in our
relevant client work and thought leadership — from
proprietary research to timely reports and industry
events, BDO is at the forefront of the public sector
conversation and believe in the power of industry
participation. Many of our practice professionals are in the field with our clients, author articles on salient
issues, and comment on breaking news. We are
speakers at industry conferences and seminars, are
active in organizations and trade associations, and
serve as resources for trade publications.

Our goal is to bring perspective on opportunities,
trends, issues and regulations that frame our approach
and services to address our clients’ needs.

Publications and technical updates
We share our knowledge through a variety of thought
leadership, keeping you abreast of relevant news and
hot topics that go beyond balance sheets and financial
statements.
 BDOKnows — series of newsletters, flash reports and
in-depth discussions addressing significant financial
reporting developments.
 Public-Private Partnership (P3s) — Drawing upon
our P3 practice’s 20+ year history, BDO’s
mobilization process can capture the unique
nuances to develop tailored strategies to win
alignment and approval for your development goals.
 Significant Accounting and Reporting Matters
Guide — quarterly digest of final and proposed
financial accounting standards.
 GASB, FASB, and Single Audit Flash Reports —
information about selected developments and
emerging issues are immediately e-mailed to BDO
professionals for timely communication to clients.
 Tax Newsletters and Alerts — updates on federal,
state, local, expatriate, and international
developments along with other specific tax planning
and strategy considerations.
 Industry Newsletters, Alerts, Reports, Proprietary
Studies, Infographics, and Surveys — a variety of
publications depicting specific industry issues,
emerging trends, and developments.

Topical resources available for our clients, include:
 Community Infrastructure Act: Community
Infrastructure
 Community Resilience: Community Resilience
 Innovation and Transformation: Business Innovation
 Corporate Governance and Financial Reporting:

Corporate Governance
 Single Audit: Frequently Asked Questions
 OMB Uniform Guidance
 The Latest in COVID-19 Funding Compliance
Guidance
o The Proposal must demonstrate that the Company, or its key personnel, meets the minimum experience requirement in #Prerequisites with a legally registered business name, that provides services of a similar type and scope as described in the Scope of Services. A Company shall not have filed for bankruptcy under any business name over the past five (5) years.

III.A Years of experience
Have at least ten (10) years’ of experience, within the past ten (10) years under a legally registered business name, in providing services of a similar type and scope as described in the Scope of Services. Have not filed for bankruptcy under any business name over the past five (5) years.
31 BDO | A Proposal to Provide Professional Services for City of Banning, CA Fraud, Investigations, & Disputes
We provide exceptional service for
exceptional circumstances. When
scrutiny is most intense, organizations
must not only determine the facts, but
also determine them quickly.

FORENSIC ACCOUNTING & INVESTIGATIONS
BDO’s forensic accounting professionals provide
strategic guidance to organizations across the country
and around the world, helping them resolve high-stakes
matters involving fraud and corruption, accounting
irregularities, and a wide variety of compliance issues.  Corporate Investigations
 Anti-Bribery and
Corruption Investigations
 Fraud Prevention
 Global Investigations
 Government
Investigations
 Fraud Analytics
 Books and Records
Review
 Due Diligence
 Anti-Money Laundering
Law (AML), Bank Secrecy
Act (BSA), and Office of
Foreign Asset Control
(OFAC)
 Post-acquisition Disputes
 Monitorships
 Damages Analysis
o The Proposal must demonstrate that the Company, or its key personnel, meets the minimum experience requirement in #Prerequisites with a legally registered business name, that provides services of a similar type and scope as described in the Scope of Services. A Company shall not have filed for bankruptcy under any business name over the past five (5) years.

III.A Years of experience
Have at least ten (10) years’ of experience, within the past ten (10) years under a legally registered business name, in providing services of a similar type and scope as described in the Scope of Services. Have not filed for bankruptcy under any business name over the past five (5) years.

Our forensic accounting services include:
32 BDO | A Proposal to Provide Professional Services for City of Banning, CA o Company shall provide at least 3 references, within the past 5 years, of clients for whom services have been performed that are comparable in quality and scope to that specified in this RFP. The references shall include client names, addresses, telephone numbers and e-mail addresses of the clients for whom prior work was performed and include an explanation of the services provided along with project start and end dates.

Client References
Below is a selection of prior engagements showing our technical abilities and quality of service. We invite you to reach out to hear what our clients have to say themselves. Please note that much of our investigation work is done under attorney-client privilege and therefore we are limited in which clients we can disclose in this service area.

ORGANIZATION NAME / TITLE / CONTACT

NUMBER DESCRIPTION OF THE WORK PERFORMED
State of West
Virginia
1900 Kanawha
Boulevard, East
Charleston, WV 25305
Ann Urling
Deputy Chief of Staff
Office of Governor Jim Justice
[email protected]
Phone – (304)-558-2000
• Assisted with the implementation of $4 billion+ of CARES/ARPA funds, including installing a robust risk management program and system of internal controls for the tracking and distribution of government funds
• Performed cost review/forensic analysis of ARPA grant funds to detect unallowable or fraudulent costs – regularly reported findings to Governor's office and provided guidance on proper risk management procedures
• Assisted with responding to Inspector General inquiries and desk reviews/audits
Fairbanks North Star
Borough
907 Terminal Street
Fairbanks, AK 99701
Jim Williams
Chief of Staff
[email protected]
Phone – (907)-459-1305
• Uncovered fraudulent activity within small business grant programs • Assisted with quantifying and assessing instances of fraud • Provided control remediation measures to mitigate future risks of fraud
Feed the Children
333 N. Meridian
Oklahoma City, OK
73107
Christy Tharp
Chief Financial Officer
[email protected]
Phone - (405)-945-4040
• Performed investigation of procurement procedures following allegation of kickbacks at local field office
• Performed Fair Market Analysis to establish reasonable pricing for purchased items to assess potential for fraud/waste/abuse • Completed Internal Control Assessment to ensure control gaps were filled
Planned Parenthood
Global
26 Bleecker St,
New York, NY 10018
Hilary M. Castillo (Currently at
Start NY)
Former Vice President, Global
Operations at PPFA
Chief Operating Officer
[email protected]
Phone – (929)-722-1398
• Conducted investigation of procurement practices following allegation of conflicts of interest at local field office • Completed Internal Control Assessment to ensure control gaps were filled
International Relief
and Development
(now known as
Blumont)
1621 N Kent Street
Arlington, VA 22209
Vladan Ilic (Currently at Winrock
International)
Former Assistant Vice President,
Finance at Blumont
Senior Director, International
Controller at Winrock
[email protected]
Phone – (703)-209-6788
• Led numerous investigations on behalf of the organization with its field operations to determine if waste, fraud, or abuse exists and/or if there is high likelihood for such behaviors
• Assessments required vendor and beneficiary procedures and calculations and potential irregularities.
33 BDO | A Proposal to Provide Professional Services for City of Banning, CA Attorney References
As mentioned on the previous slide, much of our investigations work is done under the privilege of outside legal counsel. We invite you to reach out to our valued attorney contacts below for more information on our qualifications. Out of respect for them and their/our client’s privacy, we ask that specific client details not be requested, or those requests be limited. BDO will of course show the same discretion for the City should it be awarded this bid.

ORGANIZATION NAME / TITLE / CONTACT NUMBER
Venable LLP (LAW FIRM)
600 Massachusetts Ave NW
Washington, DC 20001
Dismas Locaria
Partner
[email protected]
Phone – (202)-344-8013
Crowell and Mooring LLP (LAW FIRM)
1001 Pennsylvania Avenue NW
Washington, DC 20004
Peter Eyre
Partner
[email protected]
Phone – (202)-624-2807
Wiley LLP (LAW FIRM)
2050 M Street NW
Washington, DC 20036
Brian Walsh
Partner
[email protected]
Phone – (202)-719-7469
Bass, Berry & Sims PLC (LAW FIRM)
1201 Pennsylvania Avenue NW
Washington, DC 20004
Todd R. Overman
Member
[email protected]
Phone - (202)-827-2975
34 BDO | A Proposal to Provide Professional Services for City of Banning, CA Appendix
35 BDO | A Proposal to Provide Professional Services for City of Banning, CA BDO Considerations of the City’s Sample
Agreement
Proposed Changes to the Contract – BDO USA
BDO USA (“BDO”) has reviewed the City of Banning’s (the “City”) Request for Proposal – Citywide Forensic Accounting and Investigation Services – RFP-23-040 (the “RFP”). We have provided below some exceptions to the City’s Professional Services Agreement (the “Agreement”) for your consideration and are confident that in the event that BDO is awarded any portion of the work as the result of the current RFP, we can reach mutually-agreeable terms that combine the needs of both the City and BDO. Notwithstanding anything to the contrary set forth in the RFP, the parties agree that any services shall be subject to such mutually agreeable terms rather than the Agreement.

General Provisions (Section VI, B)

1. Compensation and Method of Payment (Article 2)
a. We would like to add standard non-payment remedies to this section.

2. Schedule of Performance (Section 3.2)
a. We would like to clarify in this section that BDO’s services are contingent upon the timely cooperation of the City and its personnel.

3. Prohibition Against Subcontracting or Assignment (Section 4.5) a. We would like to discuss edits to this Section that would allow personnel from a BDO subsidiary to work on this engagement.

4. Insurance, Indemnification and Bonds (Article 5)
a. BDO is generally able to agree to the insurance coverage provisions of Sections 5.1-5.2, but we would also need to make certain edits to conform with BDO’s insurance coverage. b. We would like to remove Section 5.3.A as inapplicable to the contemplated services. c. As BDO’s services are intended solely for our clients and not for third parties, we do not typically give broad indemnities to our clients to cover claims brough by third parties. Accordingly, we cannot agree to the indemnity in Section 5.3.B(1), but we’d be happy to work on a compromise. d. As is standard for our professional services and industry, BDO would like to discuss certain applicable indemnities that we receive from our clients for our professional services. e. Limitation of liability: BDO would also like to discuss including language in the Agreement to the effect that, absent a party’s fraud or intentional misconduct, both parties should be responsible for only direct and compensatory damages, and that BDO’s total liability under the agreement be limited to some mutually agreeable amount.

5. Ownership of Documents (Section 6.3)
a. We would like to clarify in this section that the City will own BDO’s final deliverables. b. We would like to include a provision in this section that states that BDO retains ownership of our internal work papers that support and substantiate our services and include items such as work programs and analyses that do not constitute part of the deliverables to the City.

6. California Law (Section 7.1)
a. BDO’s strong preference is to resolve disputes through binding arbitration. We would like to discuss whether the City would consider a binding arbitration provision. If no, we can agree to resolve disputes by a bench trial, subject to a standard jury trial waiver.

BDO USA refers to BDO USA, P.C., a Virginia professional corporation, also doing business in certain jurisdictions with an alternative identifying abbreviation, such as Corp. or P.S.C.
36 BDO | A Proposal to Provide Professional Services for City of Banning, CA BDO Considerations of the City’s Sample
Agreement Cont.

1. Liquidated Damages (Section 7.7)
a. We would like to confirm that this section is not applicable.

2. Termination Prior to Expiration of Term (Section 7.8) a. As is standard in BDO’s professional services and industry, we would like to include a termination term that would allow either party to terminate the agreement if required by professional standards or applicable law/regulation.

3. Attorneys’ Fees (Section 7.10)
a. We would like to remove this provision. BDO cannot agree to reimburse the City for its attorneys’ fees incurred in the enforcement of any remedies under the Agreement.

4. Conflict of Interest (Section 8.2)
a. Because BDO is a large professional services firm with operations throughout the U.S., we would like to limit this provision to the principals and employees providing services under the Agreement.

Additional Terms and Conditions
As a public accounting firm and consistent with industry standards, BDO would need the Agreement to include some of BDO’s standard engagement letter terms which include, among other provisions, terms that reflect BDO’s professional standards, including certain terms required under AICPA guidance. Upon request, we would be happy to provide the City with a template of our standard engagement letter for your review. This letter includes include the following provisions:

1. City Materials
a. We would like to include a provision that clarifies that BDO is entitled to rely on all representations, assumptions, information and data supplied by the City (the “City Materials”) and that the City is authorized to provide BDO with all such City Materials.

2. Third-Parties and Use
a. BDO’s standard agreements contain a provision that clarifies that our services are strictly for our client’s use only and that third parties are not permitted to rely in any manner on our services.

3. Subpoenas
a. We would like to discuss including the standard provision that, in the event of a subpoena or other legal process, the City will compensate BDO for our reasonable, documented time incurred in responding to such subpoena and related reasonable out-of-pocket expenses.

4. Email Communications
a. We would like to discuss adding a standard provision whereby BDO disclaims liability for the interception or unintentional disclosure of email transmissions.

5. External Computing Options/Licensing Representation
a. BDO would like to discuss whether, as part of the project, the City will request BDO to use third-party, external computing options or software and adding standard provisions to cover the use of such options. b. Additionally, if the services will require the use of such external computing options or software, we would request a representation from the City that it has obtained all licenses and authorizations necessary to allow BDO to access such options or software.

6. Restricted Federal Data
37 BDO | A Proposal to Provide Professional Services for City of Banning, CA BDO Considerations of the City’s Sample
Agreement Cont.
a. BDO would like to include a provision clarifying that the services will not involve the processing of data subject to federal laws, regulations or government-wide policies that require safeguarding or dissemination controls.

1. Other Applicable Provisions
a. BDO Responsibilities
b. Client Responsibilities
c. Consent for Disclosure
d. Intellectual Property
At BDO, our purpose is helping people thrive, every day. Together, we are focused on delivering exceptional and sustainable outcomes — for our people, our clients and our communities. Across the U.S., and in over 160 countries through our global organization, BDO professionals provide assurance, tax and advisory services for a diverse range of clients.

BDO is the brand name for the BDO network and for each of the BDO Member Firms. BDO USA, P.C., a Virginia professional corporation, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms: www.bdo.com Material discussed in this publication is meant to provide general information and should not be acted on without professional advice tailored to your needs. © 2023 BDO USA, P.C. All rights reserved.

NOVEMBER 28, 2023

A PROPOSAL TO PROVIDE
PROFESSIONAL SERVICES FOR:

City of Banning, CA
| |
| |
| |

HRS RATE
% BY
HOURS %BY COST TOTAL HRS RATE
% BY
HOURS %BY COST TOTAL | |
Partners 0.0 $265.00 0.00% $0.00 $0.00 0.0 $265.00 #DIV/0! #DIV/0! $0.00 | | Managers 180.0 $265.00 33.33% 0.340957827 $47,700.00 0.0 $265.00 #DIV/0! #DIV/0! $0.00 | | Supervisory Staff 360.0 $220.00 66.67% 0.566118656 $79,200.00 0.0 $220.00 #DIV/0! #DIV/0! $0.00 | | Staff 0.0 $200.00 0.00% 0 $0.00 0.0 $200.00 #DIV/0! #DIV/0! $0.00 | | Other 0.0 $200.00 0.00% 0 $0.00 0.0 $200.00 #DIV/0! #DIV/0! $0.00 | | SUB TOTAL 540.0 $126,900.00 0.0 $0.00 | |
Out of Pocket Expenses: $13,000.00 $0.00 | |
TOTAL BY YEAR $139,900.00 $0.00 | |
GRAND TOTAL $139,900.00 | |
BDO will be charging travel costs including airfare, hotel, meals, and rental cars. Rates will not exceed the IRS current rates.

Airfare $ 4,500
Hotel $ 6,000
Meals $ 1,500
Rental Car $ 1,000
Estimated Number of Days Onsite 10
Total $ 13,000

CITY OF BANNING FORENSIC INVESTIGATION AND ACCOUNTING SERVICES Phase 1 Phase 2 (if applicable)
Phase 1 Travel
BDO includes its hourly rates for Phase 2 (and beyond); however, an accurate cost estimate for Phase 2 costs
can only be provided at the conclusion of Phase 1, when the activities required for Phase 2 will be known.

DISCRIPTION / YEAR
COMPANY NAME > BDO USA, P.C.
2 BDO | A Proposal to Provide Professional Services for City of Banning, CA Pricing Form
3 BDO | A Proposal to Provide Professional Services for City of Banning, CA Fee Assumptions

ASSUMPTIONS
Our Phase 1 fee estimate is based on the following
assumptions:
 A maximum 4 months of scope for investigation
services.
 10 days of onsite work and the remainder of days
being remote work.
 Hotel, airfare, rental car and meals for 2 BDO
personnel traveling to the City of Banning.
 Key documents are provided on the dates agreed and
there are no significant delays outside of our
control.
 Your personnel prepare schedules and analyses as
requested and are available to assist us as needed.
 Prior year workpapers will be made available for our
review.
 Financial statements and supporting schedules for all entities are prepared in-house by management.
 No significant changes occur in the internal
accounting controls, accounting systems, key
personnel, or structure of the organization.
 Read-only access to the City's financial reporting and payment systems.

COST ESTIMATES/PROFESSIONAL HOURLY
RATES
For Phase 1, we have completed the excel sheet
(provided by the City) and included our total maximum
cost estimate. An accurate cost estimate for Phase 2
costs can only be provided at the conclusion of Phase
1, when the activities required for Phase 2 will be
known. Below are our standard average hourly bill
rates which will be used to price future scopes of
work (e.g, Phase 2 and beyond). We evaluate these
rates each year to take inflation and salary increases
into consideration. We do not anticipate more than an
8% annual increase.

Professional Level Hourly Rates
Principal/Director $265
Senior Manager $265
Manager $240
Senior Associate $220
Associate $200
At BDO, our purpose is helping people thrive, every day. Together, we are focused on delivering exceptional and sustainable outcomes — for our people, our clients and our communities. Across the U.S., and in over 160 countries through our global organization, BDO professionals provide assurance, tax and advisory services for a diverse range of clients.

BDO is the brand name for the BDO network and for each of the BDO Member Firms. BDO USA, P.C., a Virginia professional corporation, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms: www.bdo.com Material discussed in this publication is meant to provide general information and should not be acted on without professional advice tailored to your needs. © 2023 BDO USA, P.C. All rights reserved.